HNA Sells Off Two Kai Tak Plots To Henderson

Cash-strapped mainland conglomerate, HNA, said on Tuesday that it is selling two Kai Tak residential sites to Henderson Land Development for a total of HK$16 billion, about two years after it bought them for a then record-breaking price.

HNA outbid many local major developers in winning the sites, making headlines in the territory. It still owns two other residential plots in Kai Tak and the plans for them remains unclear.

The company's Hong Kong-listed unit disclosed to the stock exchange that the sites had been sold to Henderson.

Last year, HNA's chairman Chen Feng said he would help pour cold water on Hong Kong's red hot home prices by selling the Kai Tak flats at cost price to its employees here.

It's not known if that plan still exists as HNA faces financial strains following a buyout spree over the past two years, which has sparked scrutiny of its opaque ownership and use of leverage.

It has over the past few months focused on scaling back its offshore real estate investments after being targeted by mainland regulators .

Late last month, HNA reached a deal to sell a building in Sydney, raising more than US$160 million.

Last year reports had emerged that the Hong Kong Monetary Authority had asked major lenders for details on their loans to HNA and another mainland conglomerate, Dalian Wanda Group.